Topic 2 - Advise on Resource Requirements

What are Business Resources?

This is anything that is used to perform the functions of an organisation.

For Example:  A real estate agency has the prime function of:

To carry out this prime function, a range of support functions are performed.

Each function requires a range of resources to successfully perform its tasks. These will vary according to their needs. However, here are just a few:

• Facilities: reception area & waiting area, toilets, brochures & information about properties, vehicle to transport clients, designated areas for staff to work and speak to clients and more
• Software: Microsoft Office (or similar), website, “virtual” visits of properties, databases of properties- often as part of a network of agencies and more
• Raw Materials: as a real estate agency is a service-based organisation it does not require a lot of raw materials.
• Human Resources: staff need training programs focused on customer service and product knowledge. The choice of staff, as a vital resource in this industry, is very important. They will need to have excellent communication skills.
• Stock & Supplies: newsletters, leaflets & brochures, for sale/for lease signs, stationery-eg paper with letterhead, envelopes, contract forms, information about regulations, pens, copier paper, computer consumables and more.
  

Therefore ........ Resources can be classified as:

 

How can Business Resources be Calculated? (ie what to order and when!)

 

There are a number of factors to take into consideration when making decisions about business resources.

 

What do we have in stock already?

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What are our specific needs?

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How much can we spend?

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Are credit facilities available if needed?

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How durable is the stock?  Deteriorate? Become obsolete?

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How much room do we have for storage?

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What bargains are currently available?

 

An office worker will be in control of the stock for office equipment and consummables. In a small business, they may also be involved in the control of the stock of goods the business sells. The previous seven considerations will influence how resources are acquired - in particular how often. Resources can be calculated:

 

daily
weekly
monthly
quarterly
biannually
annually

 

 

NB:

quarterly = every 4 months

biannually = every 6 months

annually = every 12 months

Case Study - Establishing Stock Levels

Click the Glossary for Terminology

 

Don't forget the 7 considerations

 

Existing Stock

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Our Needs

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Budget $

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Credit ?

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Durability / Perishability

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Storage Space

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Bargains / Discounts

Understocking may mean tasks cannot be completed, orders not filled and possible less business.

Overstocking means valuable dollars are tied up in stock rather than being spent elsewhere in the business.

There are further considerations when assessing stock / resource levels

Assessing lead time required by suppliers

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Determining a "buffer" resource level to cover immediate needs and enough for something unexpected

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Establishing a method where the business is alerted when the minimum resource level has been reached

 

Now tryTask 1

 

Organisational Requirements when Maintaining Business Resources

 

Rebecca is new to the job in the Swaggies Purchasing Department. One of her responsibilities is to order the office supplies for Head Office in Sydney. She has a lot to learn about policies and procedures when doing this task.

 

Rebecca needs to look closely at:

Procedures Manual	Goals / Objectives / Plans	Legal & Organisational Policy
Business & Performance Plans	Security & Confidentiality	Management & Accountability
Access & Equity	Ethical standards	OH & S Policies
Quality management	Resource parameters	Manufacturer's specifications

There is little flexibility when it comes to assessing resource requirements in an organisation. It is usual for one person to have the responsibility or to oversee others who may place orders for their departments.

Organisations, therefore, will have a set of procedures to be followed that take into account the goals of the business.

Swaggies ability to maintain resources will impact on the key strategies:

• Maintain excellent customer and community relations
• Maintain unique in-store presentation
  

It will also impact on the following functions:

• A business plan for operations
• Stock for sale
• Maintenance of customer service standards
  

Stock maintenance is the responsibility of:

• Purchasing Department – orders the products supplied in Swaggies stores and all other goods and services needed by the company.
• Warehouse – stock management and rotation

 

Now tryTask 2

 

Now tryActivity B

Choosing the Best Equipment, Materials and Supplies for the Job

Many things need to be considered when trying to accomplish a task efficiently. The effective choice of equipment, material & supplies is important.

The choice will be determined by:

Now tryActivity C

Activity C illustrates the decision-making involved when choosing the best way to complete a task. Sometimes, it will be "trial and error" until the best method is established; other times an established procedure will already be in place.

 

Now tryTask 3

This is the end of Topic 2.  Now try Topic 3